Thai Cabinet to conclude the first car buyer policy

[webfact]

Cabinet to conclude the first car buyer policy

BANGKOK, 6 May 2014, (NNT) - The Excise Department is proposing the cabinet conclude the Government’s first-car buyer tax rebate policy within the 2015 fiscal year.

The Director General of the Excise Department, Somchai Poonsawad, said that initially the cabinet didn't set a definite period for the project; concluding the policy would simplify the rebate payment process, and enable the government to allocate funds for the scheme.

He also said eligible policy participants should claim their purchased vehicles by September.

On April 28th, the government approved 3.1 billion baht out of a requested 8 billion baht to pay the tax rebates, surmising that the amount would be completely spent before the next government was formed.

The Excise Department now has an 8.2 billion baht budget to make the payments when the approved sum is added to the remaining 5.1 billion baht, effectively enabling the department to make the payments until July.

Mr. Somchai said his department is due to pay 3 billion baht in rebates on Friday, May 9th.

-- NNT 2014-05-06

[Ricardo]

"Mr. Somchai said his department is due to pay 3 billion baht in rebates on Friday, May 9th."

Better late than never !

[djjamie]

Another failed scheme coming to a close.

Imagine a country like Thailand that has some of the worst traffic jams in the world and the PTP introduce a scheme with the incentive being that people switch from motorbikes to cars and a measure to boost car sales.

The only successful part of this scheme is that not one person committed suicide while waiting on the money promised by the PTP that did not arrive.

[Thaiisnotrequired]

"surmising that the amount would be completely spent before the next government was formed."

Of course, Somchai. However, it won't be spent on where it is supposed to go, will it?

[JAS21]

Another failed scheme coming to a close.

Imagine a country like Thailand that has some of the worst traffic jams in the world and the PTP introduce a scheme with the incentive being that people switch from motorbikes to cars and a measure to boost car sales.

The only successful part of this scheme is that not one person committed suicide while waiting on the money promised by the PTP that did not arrive.

Since this scheme, around our way traffic has become a 'kin nightmare ... PTP should have parked this scheme where the sun doesn't shine ... this lunatic scheme was just a vote puller, accepted by simpletons, many of whom are now deeper in debt . Will they learn ... lets hope that the penny is slowly dropping ............

[NongKhaiKid]

A full settlement or words to that effect, hope the rice farmers don't get any ideas.

[marko kok prong]

There will of course be a delay and it will be put off to next month,then the next month and so on.

[chainarong]

First it is only a proposal, the second is they are in caretaker mode, I rest my case.

[chainarong]

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A full settlement or words to that effect, hope the rice farmers don't get any ideas.

NKK if you look at between the lines , what the PTP really said was, that if every rice farmer brought a new car, err yeah.

[Now or Never]

First it is only a proposal, the second is they are in caretaker mode, I rest my case.

Yes... 100% correct. More hot air and verbal diarrhea from the PTP

[AleG]

That's funny, just last week they were saying it was impossible for the PTP government to stop the Rice Scheme because it was an election promise and yadda yadda... Now it turns they can actually stop their policies, fancy that.

[ratcatcher]

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A full settlement or words to that effect, hope the rice farmers don't get any ideas.

NKK if you look at between the lines , what the PTP really said was, that if every rice farmer brought a new car, err yeah.

Surely, thousands of rice farmers who benefited from the "successful" rice pledging scheme (making them all rich) would have willingly rushed out to buy new cars. However I'm not sure a Honda Brio or Toyota Vios are much use to them.

Perhaps pickups were not part of the plan.

[gemini81]

No need. We predicted it was a scam before it started, creates debt, creates more traffic. Confirmed. PTP you're the biggest morons in politics ever.

[rubl]

As far as I know since January 2013 the 'scheme' ended and no one could buy a car and join the scheme with it.

So even if the policy still stands whether a renewed period is defined or not the period already closed can be fiscally managed. As such since January 2013 the government through the Excise Department knew how many cars were bought, and how much excise tax would need to be rebated. As it is rebate on already received tax this should be visible in the National Budgets of 2012/2013 and 2013/2014..

I would call this a possible case of negligence, IMHO

[topt]

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<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

A full settlement or words to that effect, hope the rice farmers don't get any ideas.

NKK if you look at between the lines , what the PTP really said was, that if every rice farmer brought a new car, err yeah.

Surely, thousands of rice farmers who benefited from the "successful" rice pledging scheme (making them all rich) would have willingly rushed out to buy new cars. However I'm not sure a Honda Brio or Toyota Vios are much use to them.

Perhaps pickups were not part of the plan.

Yes they were as my gf received the rebate on one.

As far as I know since January 2013 the 'scheme' ended and no one could buy a car and join the scheme with it.

So even if the policy still stands whether a renewed period is defined or not the period already closed can be fiscally managed. As such since January 2013 the government through the Excise Department knew how many cars were bought, and how much excise tax would need to be rebated. As it is rebate on already received tax this should be visible in the National Budgets of 2012/2013 and 2013/2014..

I would call this a possible case of negligence, IMHO

It is certainly negligence when they are now trying to claw back money from people they believe were paid in error - usually those who put deposits down before the start of the scheme but took delivery after it had started. If the dates were wrong why did they pay out in the first instance - apparently because if you applied the documentation was not checked specifically for this...........

[rubl]

Not really surprised, a previous topic had

"Thais have scored very low in regard to their financial management skills, according to Piyabutr Chonvicharn, Vice-Chairman of the Kenan Institute Asia.

Mr. Piyabutr cited a recent survey by the Bank of Thailand and the Finance Ministry as showing that three groups of people most at risk in piling up on debt were students, low-income people, and farmers. Shockingly, they make up at least 70 percent of the Thai population."

http://www.thaivisa.com/forum/topic/722826-thais-have-very-poor-financial-management-skills/

Of course the survey didn't show anything on the financial management skills of the government

[watso63]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

A full settlement or words to that effect, hope the rice farmers don't get any ideas.

NKK if you look at between the lines , what the PTP really said was, that if every rice farmer brought a new car, err yeah.

Surely, thousands of rice farmers who benefited from the "successful" rice pledging scheme (making them all rich) would have willingly rushed out to buy new cars. However I'm not sure a Honda Brio or Toyota Vios are much use to them.

Perhaps pickups were not part of the plan.

Oh yes they were. I got 80,000THB for my Mazda BT-50 back in December 2013. I know a few people around here with new pick-ups. No real job that I can see, certainly nothing where they pay income tax. Except for school teachers, 10,000/month salary buying an 800,000 pick-up??? Looks good on the drive though.

[MaiChai]

Irresponsible encouraging people to buy cars on credit when they probably cant afford them. Many reasons why it was a stupid idea. Very few reasons why it was a good idea. If you want to help people, encourage them to buy a home; a much better idea.

[Torkmada]

Another failed scheme coming to a close.

Imagine a country like Thailand that has some of the worst traffic jams in the world and the PTP introduce a scheme with the incentive being that people switch from motorbikes to cars and a measure to boost car sales.

The only successful part of this scheme is that not one person committed suicide while waiting on the money promised by the PTP that did not arrive.

Your ignorance is again on show here.

Thailand has a massive car assembly industry - the scheme in effect subsidises that industries workforce by increasing demand for their product - win.

In addition the scheme also shows the Japanese (Toyota) and others that the Thai government seriously supports them and it is likely to help win more direct foreign investment for Thailand - another big win.

The scheme also stimulates the economy in general with all the extra financial circulation it creates - win, win, win.

Many countries have introduced similar schemes (cash for clunkers)

This is exactly the sort of thing good governments do.

[Torkmada]

Irresponsible encouraging people to buy cars on credit when they probably cant afford them. Many reasons why it was a stupid idea. Very few reasons why it was a good idea. If you want to help people, encourage them to buy a home; a much better idea.

You need to attend a few courses in logic.

How on earth is it logical to suggest that people who can't afford cars without using dodgy credit should instead be encouraged to buy houses.

Last I check the average car was slightly less expensive than the average house.

[MaiChai]

I see you have red shirt logic of shoot anyone who doesn't agree with. I have a different opinion from you but i would never lower myself to intimidate and bully you. You are entitled to your opinion.

[rubl]

Another failed scheme coming to a close.

Imagine a country like Thailand that has some of the worst traffic jams in the world and the PTP introduce a scheme with the incentive being that people switch from motorbikes to cars and a measure to boost car sales.

The only successful part of this scheme is that not one person committed suicide while waiting on the money promised by the PTP that did not arrive.

Your ignorance is again on show here.

Thailand has a massive car assembly industry - the scheme in effect subsidises that industries workforce by increasing demand for their product - win.

In addition the scheme also shows the Japanese (Toyota) and others that the Thai government seriously supports them and it is likely to help win more direct foreign investment for Thailand - another big win.

The scheme also stimulates the economy in general with all the extra financial circulation it creates - win, win, win.

Many countries have introduced similar schemes (cash for clunkers)

This is exactly the sort of thing good governments do.

So, what was the official reason for the 'first car owner' policy?

As part of the 'urgent policies to be implemented the first year', under

1.8 Raising people’s standard of living by enhancing domestic purchasing power and creating balance and strength with quality in the macroeconomic system.

we had

1.8.4 Introduce tax measures to reduce the general public’s burden of purchasing such essentials as the first house and car.

[Suriya4]

With 100,000 baht already in my pocket, thousand of people really love this scheme. The govt did not give out money, they just receive less tax.

Sour grapes for those who did not react to the offers in time, or for farang, nor eligible.

[natway09]

I would far rather have seen a first home buyers scheme. Cars, ridiculous,

[rubl]

I would far rather have seen a first home buyers scheme. Cars, ridiculous,

There was a "first home buyers" scheme, or maybe that was in a moribund state and just still there as policy without activity.

Anyway it was not successful and the maximum price of houses eligible was raised at least once without much effect. Not sure if the lack of interest was due to the difficulty to get a few million Baht mortgage or a lack of suitable homes.

[Langsuan Man]

I am still waiting to meet a real "first time buyer" who took advantage of this scheme.

Every Thai I know, just used it to get a new car or truck and then sold theirs, resulting in a glut of used cars with the attendant price drop